Bonus: SVB's Collapse: Is Real Estate at Risk in The Fallout?

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 17 March 2023

⏱️ 73 minutes

🔗️ Recording | iTunes | RSS

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Summary

SVB’s (Silicon Valley Bank) collapse has more to do with the housing market than you think. With bank runs becoming contagious, Americans in fear of economic turmoil, and a recession now closer on the horizon, assets like real estate could be affected in ways that most everyday Americans don’t realize. But, to understand what could happen to home prices and the US economy, we’ll need to explain the entire situation. Back on as expert guests, J Scott, multi-decade investor, and Scott Trench, CEO of BiggerPockets, are here to share their takes on the SVB’s meltdown. More importantly, they explain the events leading up to this bank collapse, how the pandemic created fuel for this future fire, and whether SVB’s collapse could cause a chain reaction that leads to more bank failures, harder economic times, and, surprisingly, higher mortgage rates. J and Scott debate whether or not more small banks are at risk, what could happen to HELOCs (home equity lines of credit), mortgages, and other financing options, and whether or not real estate will go down with the ship as our economic situation goes from bad to worse. And, if you’ve been saving up for your next investment property, stick around as J and Scott walk through how real estate investors should be using their money in troubling times like today. In This Episode We Cover: SVB’s collapse explained and how it could drag us into a deeper recession The effects on real estate and whether or not prices will drop as a result Mortgage rate predictions and the Fed’s shaky decision to raise or halt rates HELOCs (home equity lines of credit), mortgages, and other property financing options that could be in danger Whether or not we’re in a recession, and if we aren’t, when the recession could hit Investing in real estate in 2023 and the moves you MUST make to protect your investment And So Much More! Links from the Show Find an Investor-Friendly Real Estate Agent BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch BPCON2023 Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area David's BiggerPockets Profile David's Instagram David’s YouTube Channel Work with David Watch J’s First Interview with BiggerPockets How Did A $200B+ Bank Collapse In 48 Hours? Is Real Estate Going To Be Impacted? Books Mentioned in the Show: Recession-Proof Real Estate Investing, Flipping, and More by J Scott Connect with Scott & J: J's BiggerPockets Profile J's Website Scott's BiggerPockets Profile Scott's Instagram Hear Scott on the BiggerPockets Money Podcast Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-bonus-svb Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is the Bigger Pockets Podcast.
0:03.2	My position is, uh, yes, we either going into a recession or not, that's, that's profound
0:07.9	insight from me.
0:08.9	But my, my point is more specifically that we're either going into a recession or you're
0:13.1	seeing rates rise even further in most of the types of borrowing that you do as a real
0:18.3	estate investor on the commercial or even conventional loans by the end of the year.
0:22.8	Those are, those are the two.
0:24.2	Welcome everyone.
0:25.2	This is a bonus show we are bringing to you today.
0:27.6	I'm David Green and I am your host.
0:29.8	Now I'll be joined today with Scott Trent and Jay Scott, both very smart gentlemen who
0:34.6	are going to help me break down what's going on with the banking industry and more importantly,
0:39.3	how this relates to real estate investors like us.
0:42.8	If you've been living under a rock and you haven't heard the news Silicon Valley bank
0:45.8	was shut down so with signature bank and possibly more on the way.
0:51.0	This is going to have an impact on liquidity in the markets.
0:54.5	It's going to have an impact on confidence in our economy and other things that affect
0:58.4	real estate investors.
0:59.4	So we are going to be discussing this and its impact on you.
1:03.2	Today's show is great as we break down why the bank failed, how more banks could be
1:08.1	failing.
1:09.1	And if we think that the country is going into a recession or if this is an isolated
	...

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